Report: Jera targets Petronas’ LNG assets acquisition

Jera, the LNG JV formed by Tokyo Electric Power and Chubu Electric of Japan is reportedly in talks with Malaysian energy giant Petronas to acquire certain assets in Sarawak. 

According to a report by the Wall Street Journal, Jera is looking to acquire Petronas’ LNG assets in Sarawak with the deal, worth about US$200 million, to be concluded in June.

Petronas operates the Bintulu LNG complex in Sarawak with a capacity to produce 25.7 mtpa of LNG with gas supplied from facilities offshore Sarawak.

The company is also close to starting up its first floating LNG producing unit in Kanowit gas field, offshore Sarawak.

Jera recently executed master sales and purchase agreement with Qatargas for the supply of close to 7 mtpa of LNG on a long-term contract. However, the company has also agreed to sell 1.5 mtpa of LNG to EDF Trading for a period of two and a half years.

Petronas, on the other hand, has been hit by low oil prices posting a lower profit for the first quarter and a decrease in LNG sales. However, at the end of May, the company extended its LNG supply with JOVO up until at least 2023.

The company has also recently issued a statement, denying reports in Russian media that it has entered talks with a Russian party for the sale of its assets and stake.

LNG World News Staff